Goal setting

Before committing to a financial plan, write down each goal you have and the amount you want to save as well as a target date for reaching your goal. Make these realistic so that you can ensure your success.

Goals make it easier to take the hard decisions over personal finances. Here are some tips when setting goals:

• Identify your short, medium and long-term goals

• Set a deadline for each goal

• Identify the main actions you need to take to achieve your goal

• Plan your savings for your goals

• Monitor progress towards your goal

Categories of goal savings:

• An emergency fund is money to pay for unexpected expenses or unforeseen obligations. It would help if you kept enough in your emergency fund to cover at least three months of living expenses. You should put your emergency fund into a high-interest account that is easily accessible.

• A goal-driven saving fund is any money set aside for a goal. When saving towards a goal, you should also consider an option where your  money is “locked away” for a fixed term. This means that you will be less tempted to withdraw and use your savings.

• Retirement savings are to cover your expenses when you retire. Speak to your financial adviser to find the retirement savings product that is right for you.

Goal setting template